COLUMBIA, S.C. --- State senators have agreed to give a committee trying to put together a bill to raise cigarette taxes as long as they need to cobble together a compromise to raise South Carolina's 7-cent a pack tax, the lowest in the nation.
The panel is looking at a 45-cent tax increase and wants the extra money for health care, Sen. Thomas Alexander said.
"I don't see it as being tied up. We're trying to work out the details," the Walhalla Republican said. "It's gotten more complicated as we've tried to figure out how it would work."
One idea gaining momentum is using the extra revenue for tax credits to buy health policies. Supporters said it would help businesses and individuals afford coverage. But it also allows lawmakers to say they are lowering one tax while raising another, giving them protection if they have signed a pledge not to increase taxes.
But Senate Minority Leader John Land said lawmakers should take a simpler approach than the tax balancing act Republicans favor.
"Number one, I would like to see whatever tax we put on first go to cover as many children we can through the Medicaid program," the Manning Democrat said.
Some children currently without health care could be covered by an expansion of the existing federal-state children's health insurance program run through Medicaid. Raising the income threshold would cover 30,000 children and cost $45 million. Up to 50,000 people could be covered by extending tax credits totaling $125 million to buy private insurance with coverage limits, according to the Covering Carolina Collaborative, a group that includes hospitals and doctors.
South Carolina has more than 147,000 children under 18 and close to 500,000 adults without insurance, according to U.S. Census data. More than a third of those without insurance have been uninsured for a year or more.
Senators have not had many chances to work on a cigarette tax increase since the tax was last raised in 1977.
For years, senators opposed to the idea have insisted bills raising taxes have to start in the House, which has routinely rejected efforts to raise the tax.
But things began to change last year as lawmakers explored options on how to raise the tax.
The bill Mr. Alexander's panel is amending left the House last year balancing a higher cigarette tax against lower sales taxes on groceries.
Comments
Taxing cigarettes is a good idea since almost none of the addicts can quit (so they'll pay anything for the "right" to smoke). Fighting over how to spend the uncollected taxes looks like typical politics. Personally, I like lowering the sales tax on groceries. Raising the medicaid tax because they raise the cigarette tax is so democratic.
Why does the liquior Industry get a free ride? You don't smoke too much and get in a car and kill someone, but you can drink and drive and kill people. What % of traffic fatalities in SC or the US caused by drunk drivers? I could care less if people drink, but fair is fair. If you're going to tax one vice then tax them all.Did you notice that the tobacco industry started getting hit so hard after they banned smoking ads on TV? Guess if the tv networks can't make money off of it then it becomes fair game. Let's stop beer , liquior and wine commericals and see what happens. How about a fat tax on fast food? The same logic applies.
this tax is just anotherr example of politicians taxing a smaller portion of the population and the hypocracy of politicians. If they believe you should smoke - then outlaw the product instead of fattening government spending. Shap on AP for the rediculous statment that they haven't had many chances since 1977 to address the issue - did the SC state congress go on hiatus? Last time I checked they met each year and could have done this at any point.
Taxing cigarettes is taxing an addiction. Nobody complains but the smokers, and they don't count as much as clean people.
if we are going to treat smokers like this in the name of employers and high insurance then we need to start taxing women for being women. it is proven the every woman in the work force averages costing employers 4000.00 a year in missed days and slowed work. whats fair is fair.
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